excalibur
Diamond Member
- Mar 19, 2015
- 22,319
- 43,052
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Thanks to environmental wackos investment in expansion haven't happened and the ESG crowd is responsible for that.
So, your cost of electricity is rising (Thermal Coal) as is the cost of steel (Met Coal) and, in the end, consumers will pay that cost as well.
So, your cost of electricity is rising (Thermal Coal) as is the cost of steel (Met Coal) and, in the end, consumers will pay that cost as well.
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For investors new to the space:
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Overall, if you own met coal miners, the selloff of thermal coal names is only a short-term distraction with no real meaning. Met coal prices are still at record levels and miners are announcing their contracted books for 2022 and beyond.
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For investors new to the space:
- Thermal coal, also known as 'steaming coal' or just 'coal', is widely used as the principle means of generating electricity in much of the world.
- Metallurgical coal or coking coal is a grade of coal that can be used to produce good-quality coke. Coke is an essential fuel and reactant in the blast furnace process for primary steelmaking.
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Overall, if you own met coal miners, the selloff of thermal coal names is only a short-term distraction with no real meaning. Met coal prices are still at record levels and miners are announcing their contracted books for 2022 and beyond.
- Arch Coal announced they are selling 400,000 tons into 2022 at a contracted price of $230 per ton. I am expecting the 2022 contracted book to continue to increase going into the holiday season.
- Coronado Global Resources announced that 32% of their domestic met coal production would be sold at $187 per ton.
- Ramaco Resources announced that they will be selling 56% of their production at $196 per ton.
- I’m expecting the remaining miners who have not announced their 2022 contracts to drop them over the next few weeks, which could act as a catalyst for met coal miners.
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Let's Talk About Coal
Investors, I wanted to spend the morning talking about coal. I received a lot of messages yesterday with coal stocks down across the board. To be upfront and clear, I am not an expert in any particular sector. I go where the busted and broken businesses live. Sectors that no one else wants to...
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